Excise duty collection from betting services grew sharply in the 2024/25 financial year, hitting KSh13.2 billion up from KSh10.6 billion the previous year. The increase marks a 22 percent jump in annual revenue from the sector.
Kenya Revenue Authority collected KSh5.7 billion in excise duty alone, exceeding the KSh5.5 billion target a 103.7 percent performance rise.
The rise in collections is credited to system integration between betting firms and KRA. The real-time linkage allows direct monitoring of betting transactions, improving transparency and tax compliance across the sector.
“This system has enabled consistent oversight, which has not only improved collection efficiency but also discouraged underreporting,” KRA said in a statement released Tuesday. The excise duty is part of broader measures by the tax agency to tighten oversight in high-cash sectors. Betting firms are taxed directly at source a move introduced to curb revenue loss and boost enforcement.
The rise in gambling tax comes at a time when the country continues to grapple with a huge fiscal deficit. The latest Economic Survey for 2025 showed that the country’s economy slowed to 4.7 percent in 2024, down from 5.7 percent in 2023. The deceleration reflects global economic headwinds and domestic constraints on spending and borrowing.
Gambling remains a controversial but fast-growing industry in the country. As economic conditions tighten betting platforms continue to attract large numbers of users especially among unemployed youth seeking quick income. Critics have raised concerns about betting addiction and financial instability while proponents highlight the sector’s growing role in tax contribution.
KRA has signaled it will continue to expand digital oversight across other revenue streams especially in fast-moving consumer sectors prone to tax evasion.
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